Have you been wondering what are the pros and cons of both commercial and residential real estate investing? Read on and find out which is best for you.

There are a number of differences between commercial and residential properties. There is far less competition in commercial than residential. In some cases it is easier to finance commercial property than it is to finance residential. In residential the value of your house basically is determined by the house next door and the one across the street and the one 2 blocks over. In commercial real estate you could have 2 buildings next to each other and 1 could be 400 units and the other one could be 12 units. Unlike houses, with commercial real estate you have to keep finding deal after deal to make more money. On the other hand, over 120 banks failed in residential and over 700 are predicted to fail in commercial.

For commercial property whether you are looking at office or industry or retail or apartments, remember to focus on apartments for your first deal. Everybody who is into real estate investing understands how apartments. Apartments are a wonderful thing to combine with residential flipping strategy to really augment your wealth and begin to set you up long term for life.

The way the value of an apartment complex is determined is partially based on the income of the property, the more income the property takes in the more it is going to be worth. The value of a commercial property is based on the income it produces and because you can to some extent control the income, you can control the value of your property regardless of the market. What’s more? Well, the values of commercial real estate are based on rents. Higher demand for apartments means higher rents and higher values which adds up to higher profits for investors.

The truth is you invest in a lot of commercial properties for different reasons than you invest in residential property. You can use your residential investing strategies into commercial strategy because you can make large chunks of cash flipping houses and you can with apartments too. Whether it’s a residential or commercial deal, you can start small. All you need is to do a deal. Listen to all of the strategies, take notes and choose the strategy or two that you think will work best for you, but learn about them all.

Which small business marketing tip do you use to expand your business?

You may want to outsource part of your work because you don’t have the space, you have periodic busy periods, or you need more production to get orders out on time. Get these suggestions:

You could expand your market share by becoming a

middleman and offering your subcontractors products or

services. This will increase your business profits and

give you multiple income streams.

You won’t have to do time consuming tasks like

adding on new equipment or learning new software to

complete certain tasks. This will allow you to spend

more time testing your advertisements.

You won’t have to take the time to train employees.

This will allow you to spend more time working on your

marketing and advertising campaign.

You won’t have to interview employee candidates.

This will allow you to spend more time improving your

customer service, in return you will get more repeat

purchases.

You won’t have to buy extra office or work space to

complete certain tasks. You can use all the money you

save on other business expenses.

You won’t have spend money on employee costs like

taxes, medical, vacation time, holidays, workers comp.,

unemployment costs, etc. (These may vary depending on

which country you do business in.)

Give other businesses the option of selling your

product. It could be a simple joint venture deal or

an affiliate/associate program.

Learn sales ideas from reading and studying other

business’ advertising and marketing material. It

could be ads, brochures, tv ads, sales letters, etc.

You can speed up you order and delivery system with

the extra help. Your customers will appreciate the fast

service and you’ll have a higher chance that they will

buy from you again.

You can take on extra or large orders your business

couldn’t handle before. This will expand your market

share and you could also offer to take the work your

competition can’t handle.

You could get end up receiving orders from your

subcontractors. Your subcontractors may also tell other

people about your business.

Give your customers a surprise bonus for buying.

When you give customers more than they expect,

there is a good chance they will buy from you again.

Follow-up regularly with all your prospects and

current customers. When people see your ad more

than once they are more likely to buy.

The best small business marketing tip to make more orders is staying in touch with your current customers. Make more profits within your customers, do not invest your total resources and time to get new clients.

———————-

Massimo D’Amico is an Italian computer teacher. He has invented a way for any website owner to get Google AdWords pay-per-clicks for free. Google AdWords | For Free

NOTE: You have permission to reprint this article within your website or newsletter as long as you leave the article fully intact and include the “About The Author” resource box.

The value of having a Plan B should be familiar to most small business owners. However it seems that the concept of contingency planning is overlooked all too often with regard to commercial loans and working capital strategies.

One of the most entertaining and effective depictions of contingency planning can be witnessed in a movie called “Rare Birds”. This movie stars William Hurt and includes a particularly relevant line, “Always have a Plan B”, that is repeated several times. The movie should be seen by any business owner who doubts the importance of contingency plans.

The usefulness of a Plan B mentality is likely to be beneficial to many aspects of running a successful business. For various reasons, however, contingency planning appears to be under-utilized when business owners are seeking new working capital via business financing strategies such as commercial mortgages and business cash advances.

Contingency planning might be under-utilized when business owners are seeking commercial financing simply because business borrowers assume that there are not effective alternatives to the working capital financing they are seeking. As a result, many business owners might believe that it would not make sense to explore a contingency financing plan. A practical benefit of viewing the recommended movie is that it will become second nature to realize at times like this that businesses should “Always have a Plan B”.

Plan B contingency business financing can be viewed as insurance to protect a business owner in the event that something goes wrong with their working capital management. A few examples are provided below.

First, many small businesses have commercial loans that contain recall provisions that permit the lender to review the financing each year. With such terms, the lender can continue a business financing role for some borrowers and selectively eliminate what they consider to be marginal loans by exercising the recall clause. If they do, the borrower will need to pay off the entire loan or refinance within a limited period of time. The best solution for avoiding this possibility is to review current business loans and explore Plan B refinancing options if recall terms are included.

Second, a number of local banks throughout the United States have recently decided to pull the plug on future business financing. When they do so, very little advance notice has been provided in most instances. If a business has commercial loans or commercial mortgages with a regional or local lender, a Plan B should be developed for the contingency that alternative business loan arrangements could be needed in the near future.

Third, many providers for business cash advances are notorious for making unrealistic promises regarding the timing and terms for their financing. To prepare for this increasingly-common possibility, business owners should engage in thorough discussions with a working capital advance advisor before proceeding. Unlike the first two examples, in this case the Plan B approach must occur before financial arrangements are completed.

Fourth, many lenders for SBA financing, commercial mortgages and business opportunity loans are equally guilty of over-promising and under-delivering. This seems to occur disproportionately with local banks. Similar to the recommended business cash advance approach, commercial borrowers should pursue Plan B contingency financing. The ideal timing for discussing alternative commercial financing options is before committing to a specific lender.

”Always have a Plan B” is the connecting theme for the examples described above as well as other circumstances in which contingency planning is appropriate for business financing. The presence of a Plan B mentality is likely to contribute to many aspects of running a successful small business in addition to improving commercial loans.

Insurance that is procured for use only for a short period of time is known as short term insurance. Not everyone might be eligible for insurance of this kind, but the ones who are should know about when it is suitable to go in for insurance of such a kind. After all, you wouldn’t want to be stuck on a plan that is not suitable for your requirements. With the following information, you might be able to decide on whether or not you would want to go in for short term insurance.

Lower Coverage

With short term insurance, you might not get a lot of coverage. It is usually much lesser than what you might be getting with regular kinds of insurance. Hence, you should be okay with not getting a lot of money. There are a few policies that do offer a high amount of coverage, but the premiums are also higher. Hence, if you want to go in for these, you should factor all of these into account. If you have no other insurance covering you at the moment, then the lowered coverage amount should not really be an issue, you should able to go in for them without thinking too much about it.

Currently Unemployed

For individuals that have recently lost their job and don’t have any other form of insurance, then this is a truly special option. Since the costs involved with long term insurance are generally higher, short term health insurance can provide for all the necessary benefits and not cost a fortune. Hence, to remain covered while out of a job, it seems like this kind of insurance is the perfect solution. After all, no one would like to take on more risks when they are out of a job and there is quite nothing that can match the benefits provided by this form of coverage.

In Between Jobs

If you are planning on shifting jobs and are only recently out of one, anticipating getting into another one within a short period of time, then you should consider going in for short term insurance. Since the costs are justified, there is no reason as to why you would want to think twice about opting for it. After all, being safe and remaining covered even for the brief period of time that you are out of coverage is considered to be a practical solution. You wouldn’t want to miss out on this unless you thing that you are brave and can take on more risks without any problems.

For the individuals under 64 years of age, being on short term health insurance is highly recommended if they are currently out of all other kinds of insurance policies. After all, you are even saving a lot of money, which is something that you would want to do in this economy. Another important advantage is that you can get it on installments, in case you don’t have the money for it now. Hence, with all things considered, it is definitely worth the money and something that will hold good for a long time to come.

You may be concerned about insurance coverage in your old age. It’s hard to predict how long you’ll live, whether you’ll end up in a long-term care facility or nursing home, or just need aid in your own home. If you do, how will you pay for it? Many people choose to buy long term care insurance, but how do you know whether this is right for you? And how do you choose a provider and type of long term care insurance? It’s important that you don’t choose the wrong type, or an unreliable insurance company.

The first thing to consider is the cost. If you struggle to pay your everyday expenses and monthly bills, or if your only form of income is Social Security, then the last thing you need is to add another monthly payment to worry about. After all, there’s no point in paying for it now if you have to cancel it later, before you ever get to enjoy the benefits. However, if you have enough assets and a chunk of money in the bank, or a significant long-term income, it’s probably a wise investment, as long term care insurance will help you to remain financially independent after you begin to need a bit of help with everyday living. Your family members will be grateful that you planned ahead.

So how do you decide what type of long term care insurance policy is right for you?

Like most health insurance, long term insurance only covers care from a specified network of providers, hospitals and nursing homes. Some types of policies and companies cover percentages of your future health care costs, while others offer a fixed amount for each day of care. Be cautious in your choices, and be certain that the long term care insurance you choose includes inflation protection, as you can’t predict how much each day of care will cost decades in the future.

It’s important to consider any pre-existing conditions you may have, as many long term care insurance companies will charge you extra or even not accept you at all. You should also look into what sort of care is covered by the policy. Typically long term care insurance is much more limited in its network of providers than traditional health insurance. As you are planning for the future, be sure to select a reputable company that’s been around for a long time. There is no point in giving your money to a company that goes out of business long before your old age.

And don’t forget to read the fine print. If you don’t understand some of the terms used, make sure your insurance broker explains them to you clearly. It’s your own health; look after yourself and you won’t regret it.